McDermid Energy Solutions Ltd
10 Albion Way, East Kilbride, G75 0YN

SPECIALISING IN RENEWABLE ENERGY & ENERGY EFFICIENCY TECHNOLOGY

Latest News

McDermid Energy Solutions Launches Gas CHP Solutions

11/30/2017 We are pleased to announce that, in conjunction with Innasol, we are now able to offer state of the art gas fired co-generation from top quality G...

Renewable Energy

  • Solar PV
  • Solar Thermal
  • Biomass Heating
  • Wind Turbines
  • Heat Pumps

Energy Efficiency

  • Combined Heat and Power
  • Low Energy Lighting
  • Voltage Optimisation
  • Energy Monitoring
  • Rainwater Harvesting

Finance

Finance calculation

Finance calculation

Finding the best way to fund your energy efficiency or renewable energy projects is as important as ensuring you have the right technologies and products. In fact, we spend as much time with clients discussing and working on the financial aspects of any project as we do on the technical and product side.

We know that obtaining the correct finance to suit you and your business needs is key to a successful project. For this reason we work with some of the best financial houses and brokers in the UK, with many of them specialised in the financing of energy solutions. This includes options such as secured borrowings from 4.2% APR, or unsecured lending from 7% APR, all subject to various client specific criteria and system requirements.

Some of our lenders are able to offer non secured finance up to 72 months and with 0% deposit by way of a Loan, Lease or Hire Purchase agreement. Many clients also find that their combined annual incentives (e.g. FIT and/or RHI) plus their energy savings more than pay for the capital cost of the systems during the finance agreement period, thereby delivering them a positive financial impact on their business from the very start of the project.

Example

Commercial client with an annual spend of £26,800 on heating oil.
Solution = replace existing oil fired heating plant with a biomass fuelled system.

Annual RHI income from the biomass system = £24,800
Annual fuel cost saving moving to wood pellet  = £12,900
Total annual combined benefit = £37,700

Cost of installation = £97,500
100% loan, 7.9% APR over 6 years  = £1,705 per month
Annual repayment costs  = £20,460

Annual financial benefit during loan term = £37,700 – £ 20,460 = £17,240

This client would still be £17,240 better off even with the loan repayments factored in.

Enhanced Capital Allowance

This scheme is another key element to the financial calculations in ANY energy project, and is often overlooked.

The Enhanced Capital Allowance (ECA) energy scheme provides tax allowances for energy saving products. The scheme offers a 100 per cent First-Year Aallowance (FYA) for investments in certain energy saving plant and machinery. If you buy equipment that qualifies, you can write off, for example, 100 per cent of the cost against that year’s taxable profits. This could save you a lot of money, as well as reduce your business’ energy use, carbon footprint and climate change levy payments.

The ECA energy scheme supports a variety of energy saving technologies. We can advise on qualifying technology and you should, as always, seek clarification on your businesses tax situation with your own financial specialists or you appointed accountant.